Exmar Makes Loss, as Bangladesh Stumbles

Belgian gas shipowner Exmar has suffered in emergent LNG markets this year, with fallout from Bangladesh and Colombia.

It made an overall net loss in the first nine months of 2018 of $16.4mn, slightly less than its 9M2017 loss of $19.9mn, it said October 25. Moreover it made a pre-tax 3Q2018 loss from LNG operations of $9.4mn, compared to a $4.1mn Ebit profit in 3Q2017. All its LNG cashflow in the most recent quarter came from one carrier Excalibur, now on a long-term charter until 2022.

A floating storage regasification unit (FSRU) barge, that was contracted to trader Gunvor and delivered from the shipyard last December, is currently still there – as the project for which it was earmarked, by Gunvor in Bangladesh, has been cancelled by that government. Gunvor chartered the barge in May 2018 for ten years. But Exmar now admits Gunvor has certain termination rights and that the FSRU is on hire as from October 2018, with Exmar “working on several alternative financings” in case Gunvor and Bangladesh cannot patch things up.

Exmar divested its 50% stake in four large FSRUs to US shipowner Excelerate late 2017, turning a 9M2017 loss into a net 2017 profit of $28mn but massively shrinking its fleet in the process.

Exmar’s floating liquefaction barge, CFLNG (shown in banner photo, courtesy of Exmar), is “ready at the yard, being prospected for several LNG export opportunities amongst others in Argentina for YPF” and the shipowner said it is “comfortable that the unit will be able to start its gas liquefaction operations in 2019.“ The liquefaction barge was to have been deployed in Colombia, but the project sponsor there, Pacific Rubiales, ran into money problems in 2016; the barge was delivered to Exmar last year and has been seeking a charter ever since.